City of London Investment Group, an emerging markets asset manager, saw assets under management fall 18% in sterling terms for the year to 31 May 2012.
Assets were £2.91 billion (€3.6 billion) at that date, and £3.54 billion the year before.
In US dollar terms this was a 23% decrease while over the same period the MSCI Emerging Markets Index decreased by 20% in US dollar terms.
The London-listed firm said the majority of this decline occurred in the last quarter of the financial year - 29 February to 31 May 2012 - during which period the index decreased by 15%.
The firm is expecting a pre-tax profit of around £11.5 million.
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